This Is Why You Should Watch Key Support Levels

Dell Inc (DELL) closed
just above the bottom of a descending triangle last Friday.
If the
stock could not hold above this key level, I thought it might have a good chance
to test the upper boundary of a gap zone.

09:43:48 (From TradersWire)



Action

Symbol

Order Type

Setup

Stop

 Target

Current Price

Posted By

Sell

DELL sell stop at 39.48 testing an important support
level on a daily chart
39.63 39 39.54

TK

Now, let’s look at the 5-minute
chart from today’s session. My trading plan was simple. I wanted to short DELL
as soon as it slipped below the bottom of a descending triangle. I placed a sell
stop just below 39.50. Shortly after 9:45, the stock broke down on heavy volume.

10:05:37

Follow up on DELL (Pt 2)

It appears to be forming a support at 39.30. Cover the rest or move stop to
39.38.

T.Kamada

If you have questions, feel free to
mail
them to me.

Â